WHEN AND HOW TO PIVOT IN YOUR BUSINESS

WHEN AND HOW TO PIVOT IN YOUR BUSINESS

I recently went to lunch with a friend. When we were trying to decide on a place, she recommended Olive Garden. I chuckled and commented that I hadn’t been to an Olive Garden in years. When we walked into the restaurant, I was immediately taken back in time. I hadn’t been to an Olive Garden in probably 10 years, and it hadn’t changed a bit.

I’ve been noticing lately that several chain restaurants that I frequented when I was younger have recently gone into bankruptcy or gone out of business. After my visit to the Olive Garden, it doesn’t surprise me that so many of these establishments are struggling.

Did you know the average lifespan of a small business is 8½ years? According to the Bureau of Labor Statistics, approximately 20% of small businesses fail within their first year. The failure rate increases to 30% by the end of the second year, 50% by the fifth year, and 70% by the tenth year.

Why is this?

The ability to pivot, to shift direction swiftly and strategically when circumstances demand it, isn’t just a great characteristic — it’s also essential for survival and success.

EMBRACING CHANGE

In business, change is inevitable. Market trends fluctuate, client’s needs evolve, and unexpected challenges arise. You have to be able to switch things up, fail, and constantly try new things. If you get stuck in stagnation, it’s a recipe for failure. This is where the concept of pivoting comes into play.

Pivoting involves recognizing when the current strategy or direction is no longer working and making a deliberate shift to trying something new. It requires a willingness to let go of what may have worked in the past, adapt to new information, and embrace uncertainty. Rather than viewing change as scary, successful businesses see it as an opportunity for growth and opportunity.

IMPORTANCE OF PIVOTING IN BUSINESS

Staying Relevant: Industries are always changing. This can be caused by technology, consumer behaviors, or maybe even your competition. Businesses that fail to adapt risk becoming irrelevant. Pivoting allows businesses to stay ahead of the curve, ensuring their products or services remain relevant.

Seizing Opportunities: Pivoting opens doors to new opportunities that may not have been obvious before. By being flexible and open-minded, businesses can stay on top of emerging trends, untapped markets, or innovative business models. Seizing these opportunities can lead to accelerated growth and making more money.

Adapting to Customer Needs: Customer preferences and expectations are constantly changing. Pivoting allows businesses to adapt to shifting customer needs and preferences, ensuring their products or services remain aligned with market demand. By listening to customer feedback and watching behaviors, you’ll know what the industry’s needs are. This is how you build strong relationships and customer loyalty.

STRATEGIES FOR EFFECTIVE PIVOTING

1. Monitor Market Trends: Do your research, and understand your market. If you notice your industry is getting saturated with a certain product or service, try to discover where there are untapped needs that aren’t being met.
2. Be Open-Minded. Be willing to try something new, even if you’re unfamiliar with it. Being a business owner is a learning experience, and if you aren’t learning every day, you aren’t trying.
3. Seek Feedback: Actively seek feedback from customers, your team, and your colleagues. Listen attentively to their insights and suggestions. Use feedback to inform your decision-making process.
4. Embrace Failure: Recognize that failure is an inevitable part of the innovation process. Encourage a mindset of resilience and learning from setbacks. Use failures as opportunities to iterate, refine, and pivot toward more successful outcomes.
5. Stay True to Your Vision and Values: While pivoting may involve changes in strategy or tactics, it’s essential to stay true to your core values and long-term vision. Ensure that any pivots align with your overarching mission and strategic objectives.

In today’s unpredictable business environment, the ability to pivot is golden. By embracing change, seizing opportunities, and being willing to try new things, you’ll grow as a business owner. Whether you’re adapting to shifting market trends, customer needs, or unforeseen challenges, effective pivoting enables your business to stay relevant, seize opportunities, and thrive.

Ask yourself: Is it time to pivot?